Background
A donor-advised fund is a giving vehicle administered by a public charity to manage charitable donations. A donor opens an account in the fund and contributes cash, securities or other assets. The donor surrenders ownership of the donated assets, but retains certain advisory privileges which may include how the account is invested and how grants are made from the fund to charities.
Tax and Financial Information
A donor is eligible for a charitable income tax deduction when a gift is made to the DAF. Depending on the donor’s circumstances, gifts may be eligible for the same charitable income tax benefits as gifts to other charities. The donor must receive a gift receipt from the DAF to document the gift for tax purposes.
There is no additional charitable income tax deduction when a grant is made from a DAF to another charity (like SUNY Potsdam). However, the donor should acquire a contemporaneous acknowledgement from the charity confirming that no goods or services were provided as a result of the grant.
A donor may recommend grants to any qualified charity within any restrictions imposed by the fund. Because the donor received a full-value tax deduction for the gift to the DAF, the donor may not receive any goods or services from the charity receiving a grant from the fund.
For the same reason as above, grants from a DAF may not go to certain split-interest gifts, such as charitable gift annuities, charitable remainder trusts, and pooled life income funds.
If gifts in a DAF grow through investment, that growth will be tax-free. Any growth must also be granted to charities. A DAF may charge fees for management and investment services connected to a fund.
Other Important Information
When opening a DAF account, the donor will sign an agreement with the fund. As part of the agreement, the donor retains certain advisory privileges. This may include the ability to advise on the investment of the account and make requests for grants to other charities. It may also include the ability to name additional advisors and successor advisors, such as family members.
The fund may also place restrictions on grants, including minimum grant size, minimum or maximum numbers or dollars of grants per year, and range of eligible charities for grants.
A DAF may receive a large gift in one year, and generate a full-value income tax deduction in that year, and then allow an easy process for grants to be made to charities over a number of subsequent years.
A DAF may be useful to accept gifts of hard-to-value or complex assets before grants are made to other charities.
Donor-Advised Fund Grants to SUNY Potsdam
SUNY Potsdam does not offer a donor-advised fund, but the College is eligible to receive grants from other funds.
Information you may need to request a grant to SUNY Potsdam:
Check payable to:
Potsdam College Foundation, Inc.
44 Pierrepont Ave.
Raymond Hall 507
Potsdam, NY 13676-2294
Phone: (315) 267-3053
Federal ID Number: 23-7088021
The Potsdam College Foundation, Inc., has 501(c)(3) charity status
Grants from donor-advised funds are not always clearly identified when SUNY Potsdam receives them. It is useful for a donor to advise SUNY Potsdam using the contact information above when a grant request is made.
Grants may be made as annual, unrestricted gifts, or may be restricted to other purposes at the College.
Grants may be made to endowed funds at the College.
Pledges may be made and then fulfilled by grants from a DAF.
Through an estate gift, the Potsdam College Foundation may be named as the final beneficiary of a DAF when it terminates.
Contact us for help with questions:
Jason Ladouceur, Senior Director of College Advancement
Potsdam College Foundation
44 Pierrepont Ave., Potsdam, NY 13676
(315) 267-2190
giftplan@potsdam.edu
The Raymond Legacy Society celebrates those who have made an estate gift arrangement to support the College, as well as those who have established a permanent endowed fund. The Society also provides educational material on giving to assist alumni and friends in achieving their philanthropic goals. For more information, visit potsdam.edu/legacy.
This information does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your attorney, tax advisor and SUNY Potsdam before making or planning your gift. (rev. 01/20)